RZD International signs €1.2bn Iran Electrification Deal

RZD International and Islamic Republic of Iran Railways signed the contract for the Garmsar–Inche Bouroun Railway Line Electrification.

In the framework of the visit of the President of the Islamic Republic of Iran Hassan Rouhani to Moscow “RZD International” LLC and JSC “Islamic Republic of Iran Railways” signed the Contract for electrification of the Garmsar – Inche Bouroun railway line with the total length of 495 km.

In the Contract, the value of which is estimated at €1.2 bln, the project’s detailed cost and scope of works are determined. It includes electrification works, reconstruction of railway infrastructure, modernization of signaling and communication system, supply of machinery and vehicles, electric locomotives, rails and switches, as well as technical assistance during the first year of operation.

The project will be financed by the state export credit granted by the Government of the Russian Federation to the Government of the Islamic Republic of Iran, which was agreed on December 13th, 2016 in Tehran. The works are scheduled to start immediately after the project will be accepted for financing. The Contract is estimated to be completed in 50 months.

Implementation of the electrification project of the Garmsar – Inche Bouroun railway line will increase its capacity and running speed of the trains on certain sections. It will also provide orders to Russian manufacturers of railway machinery and equipment.

The document was signed by the Director General of RZD International Mr. Sergey Pavlov and the Managing Director of the Islamic Republic of Iran Railways Mr. Saeed Mohammadzadeh.